Pfizer’s Flop Continues

It’s been a rough ride for pharmaceutical giant Pfizer since the end of the pandemic, and that rollercoaster ride continues today. 🎢

The company last announced earnings in October but needed to update Wall Street on its 2024 forecast. It cited weak demand for its Covid products as the reason for a weaker-than-anticipated revenue and earnings forecast.

The company now expects $58.50 to $61.50 billion in revenues, implying essentially zero YoY growth and coming in below the $63.17 billion consensus estimate. As for earnings, it provided a range of $2.05 to $2.25 per share, well below the adjusted profit of $3.16 that analysts expected. 🔻

Since it’s unable to drive revenue growth, management is turning to additional cost-cutting to drive results. It now anticipates $4 billion in savings from its plan, up $500 million from its last estimate.

Pfizer CFO Dave Denton said, “While we do not expect Covid vaccination and infection rates to change materially in 2024 versus this year, we have set our Comirnaty and Paxlovid 2024 revenue expectations lower.”

The company looks to be setting the bar low for next year to give itself a chance to jump over it easily.

However, the short-term impact is that the stock extended its historic drawdown from all-time highs to 55%. This decline matches one of the largest in history, only meaningfully surpassed by the great financial crisis. Its dividend yield is now also the highest in years, though some investors fear it may have to be cut. 😱

As for the price chart, $PFE shares fell another 7% on the day despite the broader market being up handily. Despite prices being in a sustained downtrend for well over a year, the Stocktwits community remains bullish on the stock. We’ll have to wait and see whether their bet pays off. 🤷

Epic Wins A “Victory Royale” Against Google

It’s been three years since Fornite-maker Epic Games sued Apple and Google for allegedly running illegal app store monopolies. And despite losing a similar battle against Apple, the game-maker has secured a win against Google. 🏆

The jury in Epic v. Google delivered its unanimous decision after just a few hours of deliberation. They found a few key things:

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AI’s Copyright Crisis Begins

We all knew copyright law would be a key issue at the heart of the artificial intelligence (AI) revolution, but we didn’t know when. Well, the time has come. ⌛

Today, The New York Times filed a lawsuit against Microsoft and OpenAI, accusing them of infringing copyright and abusing the newspaper’s intellectual property. In its court filing, the publisher said it looks to hold the two companies accountable for the “unlawful copying and use of The Times’s uniquely valuable works,” claiming billions in statutory and actual damages.

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What’s With All The Accounting Issues?

Accounting is the practice of using numbers to tell the story of a company’s past, present, and future. For an investor, these numbers and stories are the foundation of all decisions, so it’s imperative that they’re done correctly. And generally, they are.

But lately, there’s been an uptick in the number of accounting mishaps making their way into the financial markets. Today we got a few more instances of this problem, so let’s take a look. 📝

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Chinese Smartphone Maker Unveils EV

Chinese smartphone giant Xiaomi is entering the highly competitive electric vehicle (EV) market, revealing its first electric car this weekend. 👀

The consumer electronics company unveiled its SU7 sedan, which it says it spent more than $1.4 billion to develop. The vehicle is set to roll out in China next year and is attempting to do something Faraday Future and other competitors have failed to do: create a software-focused vehicle that matches the technology people find in their phones to what’s happening in their cars. 

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